-- Meta stock has barreled up more than 60% in 2023. Here's what the charts say is next for the best-performing FAANG stock of 2023. --
By Bret Kenwell, TheStreet.com
Meta (META) has not stopped cutting jobs this year. And for the most part, the stock has not stopped rallying.
The social-media giant's shares sport a year-to-date gain of 60% and have more than doubled (up 119%) off the 52-week low. The rally has made it the best-performing FAANG component this year and over the past three months.
The rally continued on Tuesday, too, as the shares climbed 7.25%. That's as the company announced another round of layoffs, axing about 10,000 jobs and closing 5,000 open positions that it did not fill.
Understandably, some investors question whether this catalyst is sustainable. At some point, there are no more jobs to cut and the company will have to rely on growth to power the stock higher.
For now the stock is trying to push higher. Can it continue?
Daily chart of Meta stock
Chart courtesy of TrendSpider.com
Meta stock erupted in early February as investors cheered the company's earnings result. The stock enjoyed a one-day 23% rally, adding fuel to the fire in terms of its current rally.
Since then, it has been consolidating sideways, putting in a clear bull-flag pattern on the daily chart (as shown above).
The stock held up well despite Monday's volatility, and the rally on Tuesday powered Meta stock above last week's high at $190.36. If Meta stock exceeds that mark, it'll be officially in the midst of a weekly-up rotation.
If it can gain momentum, a monthly-up rotation over the February high of $197.16 is in play.
Most immediately, that would put $200 in play, although it would likely have the bulls looking for even more upside.
If Meta stock can build momentum over $200, the bulls could turn their attention to the $215 area, then to $225 to $230. Near the latter zone the shares will run into the 200-week moving average.
On the downside, this week's low near $175 is a major area to defend. If Meta stock falls back below that level, it puts $167.50 back in play, followed by the rising 50-day moving average.
For now, the trend remains incredibly bullish for Meta stock and the charts are very constructive.